What Is dHedge DAO (DHT)?
dHedge DAO The default ranking on the leader board is assigned based on a score that is based on a pool’s Sortino Ratio, adjusted for assets under management. Because the 20% target is adjusted by AUM, this means that this target return is continuously weighed against the pool value, and is influenced by new deposits, depending on the size of the deposit. For example, being up 50% on a pool with $100 AUM may be canceled out by being down 10% after a $100,000 deposit. Performing well with this higher AUM will bring the score back up again.Once eligible, a score is assigned, which increases ranking on the leader board, and approves the pool to receive Performance Mining rewards.
dHedge DAO Ratio measures risk-adjusted returns and is calculated from the time of the funding of the pool and is annualized. The target return in the Sortino Ratio formula is set to 20%. The Sortino Ratio calculation has been modified to incorporate a pool’s historical relative size. This means that more emphasis is put on performance figures when the total value of the pool is larger vs. smaller.The Sortino ratio seen in a pool’s stats is an adjusted Sortino Ratio using the adjustments described above.
dHedge DAO Storage Key Points
|Coin Name||dHedge DAO|
|Circulating Supply||27,959,431.21 DHT|
|Source Code||Click Here To View Source Code|
|Explorers||Click Here To View Explorers|
|Twitter Page||Click Here To Visit Twitter Group|
|Whitepaper||Click Here To View|
|Official Project Website||Click Here To Visit Project Website|
A pool’s Risk Factor is a function of Downside Volatility, a measure used in the dHedge DAO Ratio calculation. Risk Factor is 1 for a pool that has had very little Downside Volatility and 5 for a pool with high historical Downside Volatility. Managers may have public pools allowing anyone to become an investor. Managers may also have private pools which allow only whitelisted investors to invest. Managers can use active management strategies, algorithmic strategies, or invest in other pools on dHEDGE. Automated strategies are possible with the dHEDGE SDK.
dHedge DAO Managers make decisions on behalf of a pool of funds – and compete for the top spot on the dHEDGE leader board.If the manager’s decisions are profitable the manager may collect a performance fee as a percentage of the overall return generated by the pool. Fees are collected in pool tokens, meaning if the manager is successful their overall ownership of the pool will increase over time.Performance fee minting becomes available via High-Watermark. Performance fees aren’t decided by individual investors’ profit, but the profit of the lifetime performance.
dHedge DAO allows investors to mirror the strategy of top investment managers and traders. This is done in a way where investment managers are not able to withdraw investor funds thanks to dHEDGE’s smart contracts. Investors retain custody of their funds while invested. When an investor buys a stake in a trader’s pool, the investor is issued a pool token, representing their share in the pool. An investor is able to redeem funds from the smart contracts using their pool tokens when they withdraw.
Only the pool token holder has access to the funds in the smart contract associated with that user’s share.Pool managers can raise funds to manage in minutes with dHEDGE and without third parties.Managers have an incentive to manage funds with dHEDGE as they can place a performance fee tracking the pool’s Return on Investment (ROI).
dHedge DAO As a user, this means that the price won’t change in response to your bid because another bot picks up your bid in the order book and enters a new bid slightly higher. You get to trade at the oracle price, no matter what other participants are bidding on the same synthetic asset. The volume of limit orders bid or asked on a synthetic asset cannot influence the price at which the orders are filled.With the peer-to-contract mechanism, the price you see is the price you get.
The smart contracts powering this functionality are fundamentally drawn from dHEDGE, Synthetix, and Chainlink. How does the price of the synthetic asset get determined if not from the buyers and sellers of the synthetic assets? Price oracles, primarily Chain link price oracles, provide a consistent price feed to Synthetix contracts stipulating the market price at which the base asset is trading.